We would see a massive transfer of wealth away from the banks and the government and the stock market and real estate which will all crash and back to the wage earning middle class who would then be earning gold.

Why is this happening? It’s because your money is losing more and more value every year while your wage grows at a slower and slower pace. You are always the last to receive any new printed money. You are a middle class wage earner. You are not a government buddy. Every time money loses value, the rich get richer, because they are always the first ones to get the new batch first. Government, banks, stock market, real estate.

If you want to blame someone for the cost of living going up and your paycheck staying flat, someone to blame for the rich always getting richer and the middle class always shrinking, blame paper money and the Bank of Israel, and the government for forcing you to accept its garbage money.

Inflation is not “better” when it is lower and “worse” when it is higher. It is always, always bad, because the effect is cumulative. Inflation of 1% one year does not “make up” for inflation of 4% the year before. If prices go up 4% one year while your paycheck only goes up 2%, you now have 2% less purchasing power. If the next year prices only go up 1% and your paycheck only goes up .5%, you lose another .5% purchasing power in addition to the 2% you already lost. It only gets worse. Every year. And the losses keep adding up for the middle class. You are being robbed. Every year. All the time.

Eventually the wealth transfer will become so extreme that the system will collapse. It is inevitable. Unless we act to fix it, right now.

How? By honest money, money that cannot be printed up and simply given to the government and to the banks. Money like actual silver or gold. With honest money, the middle class always gets stronger. How? Because with honest money, the money supply stays constant or increases only very slowly, but the supply of goods in the economy grows much faster, so everything gets cheaper over time.

To give you one stark example from the United States, over the last 50 years, the price of a house in dollars has risen 780%. But the price of a house measured in ounces of silver has actually dropped 64%. What about the middle class wage earner? The average wage in dollars has gone up 766%, but the amazing thing is that, in ounces of silver, or real purchasing power, the average wage has dropped a dramatic 65%. In other words, it looks like wages have increased, but there is actually 65% less purchasing power even in that increase. That’s how insidious inflation is. It looks like you’re gaining but you’re actually losing. The middle class and the poor always lose with paper money, but they would gain with real, hard money.

What needs to be done

What needs to be done is this: The Bank of Israel needs to sell all of the foreign currency it owns and buy gold, which has been natural money for thousands of years. Then it needs to sell all the government bonds it owns and buy gold. All of them, as quickly as possible, and destroy the shekels it reabsorbs through the sale. Then it needs to announce that it has stopped printing money forever, divide the amount of shekels left in the economy by the amount of gold it now owns, and announce to every citizen of Israel and any holder of paper shekels in the world that he can now go to the bank of Israel with, say, 5,000 shekels and get 1 ounce of gold in exchange, at a set rate forevermore. Anyone holding shekels can also deposit gold in the bank of Israel and get 5,000 paper shekels in exchange, at a set price forevermore. Only when someone deposits gold can the Bank of Israel print more paper. Then, and only then.

What would happen if this were done? It will not be pretty. Not at all. In fact, the first year will be very rough, like a heroin addict going off drugs cold turkey. The ones who were first to receive printed money, they will crash badly, just like the car dealer. The government will have to shrink dramatically, many banks will go bankrupt, the stock market fed by paper money will crash, and real estate prices will plummet. Bondholders will lose almost everything. Exports will drop dramatically initially, but imports will become extremely cheap to compensate. It will be very painful for everyone who relies on inflation.

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I have a better way. Elect a PM that wants to do it. We only need 62 men. One head of the BoI, and 61 knesset members to destroy the unions and the minimum wage and slash the budget like there's no tomorrow.

We would see a massive transfer of wealth away from the banks and the government and the stock market and real estate which will all crash and back to the wage earning middle class who would then be earning gold.

All Feiglin really should say is that the gay community should do whatever it wants, raise its own money, and stop trying to legislate laws which cost money and force unwilling people to pay for something they don’t believe in.